Cosmos Health Inc. (NASDAQ: COSM)

Sector: Healthcare Industry: Medical Distribution CIK: 0001474167
Market Cap 8.90 Mn
P/B 0.38
P/E -0.48
P/S 0.15
ROIC (Qtr) -33.14
Div Yield % 0.00
Rev 1y % (Qtr) 37.86
Total Debt (Qtr) 21.07 Mn
Debt/Equity (Qtr) 0.91
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About

Cosmos Health Inc., often recognized by its ticker symbol COSM, is a company that operates within the pharmaceutical and healthcare industry. Specifically, it is engaged in the branded pharmaceuticals, generics, and nutraceuticals markets. The company's main business activities involve the manufacturing, development, and trading of its own proprietary branded nutraceutical products, as well as the trading of branded and generic pharmaceutical products. Cosmos Health Inc. operates in various countries and regions, with a focus on pharmaceutical and...

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Investment thesis

Bull case

  • Strong tangible asset base of 61.53M provides 2.92x coverage of total debt 21.07M, indicating robust asset backing and low credit risk.
  • Long-term investments of 6.83M provide solid 1.11x coverage of long-term debt 6.14M, indicating strategic financial planning.
  • Tangible assets of 61.53M provide robust 6.89x coverage of other current liabilities 8.93M, indicating strong asset backing.
  • Cash reserves of 4.63M provide solid 2.75x coverage of other non-current liabilities 1.68M, indicating strong liquidity.
  • Strong R&D investment of 641896 at 5.34x of capex 120262 shows balanced investment in innovation and infrastructure.

Bear case

  • Investment activities of (1.95M) provide weak support for R&D spending of 641896, which is -3.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (7.69M) shows concerning coverage of stock compensation expenses of 2.32M, with a -3.32 ratio indicating potential earnings quality issues.
  • High receivables of 19.64M relative to inventory of 5.68M (3.46 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (7.81M) provides weak coverage of capital expenditures of 120262, with a -64.90 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (16.61M) show weak coverage of depreciation charges of 1.36M, with a -12.18 ratio indicating high capital intensity and potential reinvestment needs.

Income Tax Authority Name Axis Breakdown of Revenue (2024)

Statement Business Segments Axis Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCK Mckesson Corp 117.90 Bn 27.17 0.30 8.62 Bn
2 CAH Cardinal Health Inc 80.96 Bn 103.48 0.82 9.03 Bn
3 COR Cencora, Inc. 79.51 Bn 93.02 0.52 7.92 Bn
4 HSIC Henry Schein Inc 9.46 Bn 24.20 0.73 3.44 Bn
5 AHG Akso Health Group 0.37 Bn -2.71 24.79 0.00 Bn
6 EDAP Edap Tms Sa 0.17 Bn -7.47 2.30 0.01 Bn
7 QIPT Quipt Home Medical Corp. 0.17 Bn -15.61 0.63 0.11 Bn
8 EMPG Empro Group Inc. 0.12 Bn 157.82 21.62 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.34 1.06
EV to Cash from Ops. EV/CFO -3.11 13.08
EV to Debt EV to Debt 1.13 282.28
EV to EBIT EV/EBIT -1.44 6.31
EV to EBITDA EV/EBITDA -1.85 12.22
EV to Free Cash Flow [EV/FCF] EV/FCF -3.06 15.66
EV to Market Cap EV to Market Cap 2.68 1.21
EV to Revenue EV/Rev 0.40 1.87
Price to Book Value [P/B] P/B 0.38 11.46
Price to Earnings [P/E] P/E -0.48 34.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.67
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.23
Interest Coverage Int. cover (Qtr) -8.61 60.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 69.34 -12,260.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.79 27.05
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.20 -177.28
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 32.43 368.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.20 -206.06
EBT Growth (1y) % EBT 1y % (Qtr) 9.07 -173.08
EPS Growth (1y) % EPS 1y % (Qtr) 69.26 -21.54
FCF Growth (1y) % FCF 1y % (Qtr) -134.83 -218.00
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 50.26 15.84
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.86 1.93
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.12 0.22
Current Ratio Curr Ratio (Qtr) 0.99 1.54
Debt to Equity Ratio Debt/Equity (Qtr) 0.91 -0.33
Interest Cover Ratio Int Coverage (Qtr) -8.61 60.87
Times Interest Earned Times Interest Earned (Qtr) -8.61 60.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -25.50 -94.80
EBIT Margin % EBIT Margin % (Qtr) -27.78 -102.39
EBT Margin % EBT Margin % (Qtr) -31.01 -105.05
Gross Margin % Gross Margin % (Qtr) 11.40 23.37
Net Profit Margin % Net Margin % (Qtr) -31.00 -86.72